Orange juice higher as greening disease spreads in Florida

FCOJ

General Comments: Futures closed higher on what appeared to be speculative short covering. Ideas are that USDA can show smaller crops due to the greening disease that has been reported in Florida. USDA has cut production potential in the previous two estimates and might be forced to trim the estimate a little more next month. Weather remains good in Florida. Temperatures remain mild in the state, and conditions are mostly dry. Forecasts call for mostly dry conditions and mild temperatures to continue after some overnight showers and storms. Forecasts do not call for any threatening temperatures, but the talk of colder weather created some buying in the nearby months. Fruit is holding for now, and irrigation is being used by producers to hold crop condition. Harvest in Florida of mid and early oranges is continuing, and the Valencia harvest is underway. Demand for domestically produced Juice remains down from last year. Weather in Brazil is reported to be good. Brazil is seeing near to above normal temperatures and scattered showers. Harvest is continuing, so an increase in supplies should be expected at this time of year.

Overnight News: Florida weather forecasts call for mostly dry conditions. Temperatures will average near to above normal.

Chart Trends: Trends in FCOJ are up with objectives of 119.00, 123.00, and 125.00 March. Support is at 116.00, 113.00, and 110.00 March, with resistance at 122.00, 126.00, and 128.00 March.

COTTON

General Comments: Futures were higher on strong demand ideas. Trends remain up as traders contemplate less planted area next year and strong export sales. Export sales have been strong for the last month to six weeks, and strong sales are expected to continue after another failed Chinese government auction held over the weekend. The current low prices are bringing into question what farmers in Texas and the Delta and Southeast will plant this year. Some are wondering if planted area might be lower this year here in the US due to weak prices against competing crops. The area lost would go mostly to Corn and Soybeans. Current weather featured some precipitation in Delta and Southeast areas, but western Texas was mostly dry. Delta and Southeast areas will turn dry starting today. Ideas are that the market can continue to work higher overall.

Overnight News: The Delta and Southeast will see mostly dry conditions. Temperatures will average near to above normal. Texas will get dry weather. Temperatures will average much above normal. The USDA spot price is now 77.54 ct/lb. ICE said that certified Cotton stocks are now 0.127 million bales, from 0.121 million yesterday. USDA said that net Upland Cotton export sales were 131,300 bales this year and 5,500 bales next year. Net Pima sales were 21,600 bales this year and 0 bales next year.

Chart Trends: Trends in Cotton are up with objectives of 9100 March. Support is at 81.40, 80.20, and 79.90 March, with resistance of 84.00, 85.25, and 87.00 March.

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